Subject: Waste Recovery Participation Fee
It has been indicated that your company, engaged in the sale, marketing, distribution, and import of fuel and lubricants, is subject to the “waste recovery participation fee” under the 11th additional article of the Environmental Law No. 2872. Questions have been raised regarding whether the waste recovery participation fee can be shown separately on invoices, whether it should be included in revenue, and whether it should be included in the VAT base.
**FOR CORPORATE TAX LAW:**
According to the Corporate Tax Law, general expenses can be deducted when calculating corporate income. The waste recovery participation fee, which is collected when products are released to the market under the Environmental Law No. 2872, should be considered as part of revenue. The paid waste recovery participation fee can be treated as an expense in the determination of corporate income.
**FOR TAX PROCEDURE LAW:**
According to the Tax Procedure Law, the waste recovery participation fee should be separately indicated on invoices. If it is included within the product price, the invoice should clearly state the portion of the price that is allocated to the waste recovery participation fee.
**FOR VALUE ADDED TAX (VAT) LAW:**
According to the VAT Law, the waste recovery participation fee must be included in the VAT base, as it is considered a payment for taxes, duties, fees, and similar costs.
In summary, the waste recovery participation fee is subject to specific rules under both corporate tax and VAT laws and should be appropriately reflected on invoices.
Source: Revenue Administration
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.
